WorksheetsPage 1
Total questions: 11
Worksheet time: 6mins
What is the primary difference in the "motive" between the Public and Private sectors?
The Public sector aims to maximize profit, while the Private sector provides free services.
The Public sector focuses on service delivery and social welfare, while the Private sector focuses on profit-making.
The Private sector is funded by taxes, while the Public sector is funded by shareholders.
There is no difference; both sectors exist solely to create jobs.
Collective goods are also frequently referred to in economics and business as:
Private goods
Luxury goods
Public goods
Consumer goods
Which of the following best represents a list of "Infrastructure" provided by the Public sector?
Office furniture, computers, and company cars.
Social media platforms, television ads, and billboards.
Roads, bridges, water supply systems, and electricity grids.
Private schools, grocery stores, and shopping malls.
How is the Public sector primarily funded to provide services to the nation?
Through the sale of shares on the JSE (Johannesburg Stock Exchange).
Through donations from international NGOs.
Through taxation (e.g., Income Tax, VAT) and government levies.
Through the profits made by small spaza shops.
A business in the Private sector can gain a "competitive advantage" by focusing on which two elements?
Increasing tax payments and following government regulations.
Unique branding and superior customer service.
Reducing the number of employees and closing down branches.
Using only collective goods and avoiding the formal sector.
What is the main characteristic that distinguishes the Formal sector from the Informal sector?
Businesses are registered with authorities, pay taxes, and comply with labor regulations.
Activities are primarily cash-based and avoid all forms of customer service.
Firms operate only online and outsource all production to third parties.
Enterprises rely on government subsidies and do not sell goods or services.
Which statement correctly describes the difference between formal and informal businesses?
Formal businesses are registered with the government and pay tax; informal businesses are not.
Informal businesses always have more than 50 employees.
Formal businesses only operate in the primary sector.
There is no difference; they are two names for the same thing.
Which of the following is an example of a "Service" activity in the Informal sector?
A street vendor selling apples on a corner.
A large multinational corporation like Mr Price.
A backyard mechanic repairing cars without a formal business license.
A commercial farmer exporting citrus fruits.
Gross Domestic Product (GDP) is defined as:
The total amount of tax collected by the government in one month.
The total value of all final goods and services produced within a country's borders in a specific time.
The sum of all money kept in private savings accounts.
The number of formal businesses that have closed down in a year.
Which of the following is a characteristic of a "Survivalist" business in the informal sector?
It aims to become a multinational corporation within one year.
It is started by someone who cannot find formal employment and needs to meet basic needs.
It has a dedicated board of directors and a marketing department.
It is heavily regulated by the Department of Trade and Industry.
Why is the Informal sector important to the South African economy?
It provides a safety net and income for people who are unemployed in the formal sector.
It is the only sector that pays Corporate Income Tax.
It prevents the Public sector from having to build infrastructure.
It is where the GDP is officially calculated.
